Bank Nifty & Nifty Trading Strategy for 03 July’13

It seems Bulls caught in trap!!

In the last session Nifty gave perfect Harami Candlestick pattern, which signifies that preceding trend is getting ready to conclude, although we don’t have long trend to talk about, but in short Nifty gave such candle near 50% Fibonacci Retracement of last sharp fall and as it can be seen here, just above its falling trend line also. In fact, even yesterday we were little skeptical about existing trend of Nifty, and we mentioned about our concern, and our view got vindicated. Anyways, it is just one candle, and no need to get panic, bulls have sufficient chance to get exit or lighten position, but yes, if today market gives weaker close, then everybody will start talking about retesting of low or optimist bulls will talk about 5700 levels. Analysis is perceptions, don’t you think so!!!

Nifty Trading Strategy

Now, there is one probability that Nifty will get stuck in a narrow range, if could not manage to break below 5815, or move above 5905. Aggressive traders can go short with a stop loss above 5910 levels, with target of 5815 and 5750.

Bank Nifty Trading Strategy

Bank Nifty remained range bound in the last session. It seems that Bank Nifty is setting stage to fall. Again, aggressive traders can go short in Bank Nifty below last sessions low of 11590 (prefer to go short below 11575) targeting about 11450. There can be surprise on the long side, but that call can be taken only after Bank Nifty moves above 11750.

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